In a word: money. Today’s restrictive credit atmosphere makes a blog about merchant cash advances even more timely and important. Non-traditional ways of lending are taking off as the market stifles or reduces all other types of small business loans. We will bring forward information to help spur business, create alternative lines of credit for entrepreneurs, and give the real scoop on the merchant cash advance industry.

Welcome to Business Loan Option’s blog. We hope that discussing the many different aspects of a merchant cash advance program, small business topics, and financial industry helps you discover an innovative way to build your business’ financial future during these challenging economic times.

What You Might Have Heard:

Cash advance loans have always been controversial for personal loans. For business loans, you will hear some of the same arguments, like they have high interest rates. The problem is that you might not hear why more business people are turning to these loans. A loan with a high interest rate is preferable to no loan at all when you are trying to make payroll. This is the situation many business owners face during this economic down turn.

What You Should Know:

Basically, the merchant cash advance is a completely different type of loan than a personal cash advance. Instead of using a paycheck as collateral, the lender uses the receivables of future credit card sales. This is ideal for businesses, like restaurants and retailers, who have this asset that no other traditional lender is willing to tap. In exchange, the lender gets to collect on the debt in a short term investment that is profitable to them. The business owner gets the ability to grow their business or ride out the tough economic times with only the current business model they have now. They don’t have to put up personal assets like a home or a car to get the loan and they don’t risk these assets should things take a turn for  the worse. These non-traditional loans are becoming so popular that once repayment is completed, many businesses opt to go back and start a new loan.

Thanks for stopping by, and hope to see you again!